Benjamin Franklin famously wrote that only two things were certain in life, death and taxes. Were he alive today, he may well add a third; annual rail fare increases. These typically happen in January and are tenuously linked to inflation (we have long campaigned that they should be linked to the Consumer Price Index rather than the higher and now defunct Retail Price Index).
This year is unusual for a number of reasons. As a result of COVID, for the first time in living memory we are enduring a series of lockdowns and this has had a huge impact on the rail industry. Individual franchises are no longer financially viable and so the Department for Transport has assumed all the revenue risk and the former franchises are now managers and operators of a concession.
With passenger numbers down significantly (with a resultant lack of fare revenue) and the Government now being on the hook for all the industries bills, it’s understandable that costs and revenue are being looked at. A recent report in the Times gave a hint as to what this might look at with a proposed fare increase over and above an already inflated measure of inflation.
Worse still, it’s suggested they may put plans for flexible season tickets on ice. We have been campaigning for flexible ticketing for a long and the pandemic has smashed the broken status quo.
Whilst this Government has form for having loose lips and floating ideas by the media, we take this issue very seriously and want to be absolutely clear on our position. NO to above inflation fare increases. This would be economic suicide by the Government and would have the potential to damage the rail industry for decades to come. Here’s why it would make no sense:
- People are struggling. Many of us will have been furloughed on reduced pay or have reduced hours. The government recognises this and has provided support and also allowed for mortgage payment holidays. A number of passengers will simply not be able to afford significantly higher rail fares.
- The pandemic has opened the eyes of many as to the possibilities of working from home. Many of us miss the company of colleagues, but is paying c£4k a year to sit for 45 minutes on a Networker, stopping at Chelsfield, really an attractive option compared to rolling out of bed late and logging on to your laptop? If we increase the price – and fail to provide suitable fares for those who want to commute part-time – many will choose not to bother to travel at all. That in turn that will damage inner city economies such as London.
- It will quite probably be counterproductive and reduce fare revenue rather than increase it. The Government will still be on the hook for all the bills, but by pricing passengers off the railway, it will leave it with a bigger shortfall to fill. From the Government’s point of view, full trains (as soon as the pandemic allows!) are the best way of covering the cost of the industry.
- Last but not least, the Government has pledged a green revolution. Rail can play a significant part in that and so making it a less attractive option makes it harder to hit our environmental targets.
Let’s hope that this was just an unnamed source who was speaking out of turn but, rest assured, we will be watching what happens. It seems this will be confirmed or refuted in Parliament on 25 November (the spending review). If we see an unfair rail fare rise materialise, we will launch into action. We will be encouraging our members, social media followers and stakeholders to contact their MP and make their feelings known.